New details reveal that former NVIDIA CEO Jensen Huang used circular financing to fund AI startups and absorb excess TSMC wafers and memory rather than letting GPU prices drop
What do you mean? As this part interested me the most. Not just NVidea’s market manipulation but the reality that the shortage was actually a glut. I dont think many analysts seen the latter coming and that could have huge implications across the industry.
The Dot Com bubble wasnt due to new websites going under. It was the massive over supply of equipment that did not meet actual demand.
I’m agreeing with the comment above, these things that the wccf article mentions aren’t present in the article they cite as source. So either they’re making it up or they linked the wrong source
From my understanding the article exaggerates whether there was a complete shortage but the wall street journal article does confirm the CFO warned about an avalanche of excess memory and wafers coming due to circular financing schemes. That, consumer-focuses exaggerations aside, is still huge.
It also implies much of the AI startups industry has been kept afloat by subsided computing credits which were a part of this circular funding scheme.
Doesnt help the wall street journal article is paywalled. I found other sources citing the wall street journal article which confirm that the CFO warned about an avalanche of over supply.
At the August meeting, Huang expressed concern that major cloud providers were exploring alternative chips while Nvidia faced an “avalanche” of commitments to purchase chip wafers and memory.
Those concerns followed a financing initiative involving Huang’s son-in-law, Nvidia Vice President Nico Caprez, who helped arrange financial guarantees for cloud providers and data-center developers purchasing Nvidia products.
Not a single mention of tsmc or silicon excess at all. Wccf writing fanfiction? Wrong source?
Edit: nvm
What do you mean? As this part interested me the most. Not just NVidea’s market manipulation but the reality that the shortage was actually a glut. I dont think many analysts seen the latter coming and that could have huge implications across the industry.
The Dot Com bubble wasnt due to new websites going under. It was the massive over supply of equipment that did not meet actual demand.
I’m agreeing with the comment above, these things that the wccf article mentions aren’t present in the article they cite as source. So either they’re making it up or they linked the wrong source
Edit: nvm
From my understanding the article exaggerates whether there was a complete shortage but the wall street journal article does confirm the CFO warned about an avalanche of excess memory and wafers coming due to circular financing schemes. That, consumer-focuses exaggerations aside, is still huge.
It also implies much of the AI startups industry has been kept afloat by subsided computing credits which were a part of this circular funding scheme.
So it’s option 3: I can’t read
Doesnt help the wall street journal article is paywalled. I found other sources citing the wall street journal article which confirm that the CFO warned about an avalanche of over supply.
https://finance.yahoo.com/markets/stocks/articles/report-jensen-huang-belittled-nvidia-145318600.html